President Biden is set to announce a groundbreaking $8.5 billion grant to Intel, a move aimed at boosting the nation’s semiconductor production and creating thousands of jobs. The announcement will take place during a visit to the Intel campus in Arizona, as part of a tour of battleground states to promote his economic agenda.
This investment, the largest under the CHIPS Act, will support the construction and expansion of Intel facilities across the United States. With a total of $39 billion in subsidies at their disposal, the Biden administration is leading an ambitious effort to increase the production of semiconductors, crucial components in modern technology.
The grants will fund projects in Arizona, Ohio, New Mexico, and Oregon, creating over 10,000 manufacturing jobs and 20,000 construction jobs. Intel plans to use the funds to build new plants, modernize existing facilities, and establish advanced packaging facilities to enhance chip performance.
Gina Raimondo, the secretary of commerce, emphasized the importance of ramping up domestic semiconductor production, citing economic and national security concerns. The goal is to reduce America’s reliance on foreign countries for advanced chips, which are essential for various industries, including artificial intelligence and defense.
Intel CEO Patrick Gelsinger praised the government incentives as a significant achievement for both his company and politicians from both parties. While the grants mark a positive step, Gelsinger highlighted the need for continued investment to reverse decades of shifting semiconductor production overseas.
The United States’ dependence on Asia for chip manufacturing has become more pronounced with the rise of artificial intelligence. By investing in Intel and other major chipmakers, the Biden administration aims to secure a domestic supply of advanced chips and position the U.S. as a leader in the AI industry.
Overall, the grants to Intel and other companies represent a significant push to strengthen the nation’s semiconductor industry and create a skilled workforce to support future growth. With billions of dollars in investments pouring into the sector, the U.S. is poised to reclaim its position as a global leader in semiconductor manufacturing.
